LOSS PREVENTION
( RETAIL SECURITY )
DEFINITION OF
RETAIL SECURITY (LOSS PREVENTION)
Loss prevention is a form
of private investigation into
larceny/theft.
The focus of such investigations generally includes shoplifting,
embezzlement,
credit
fraud, and
check
fraud. Loss prevention or
"LP" is a term used to describe a number of methods used to reduce
the amount of all losses and shrinkage often related to retail
trade.
The objective is to maximize profits through reducing shrinkage.
According to the 2001
National Retail Security Survey,
conducted by the
University of Florida,
retail operations suffered an average annual shrinkage percentage of
1.75% in 2000. Although most retailers experience a shrinkage
percentage of less than 2% some smaller retailers often experience
monthly and annual average shrinkage percentages as high as 20%.
According a study by the National Retail Security Survey 30.6% of
shrinkage comes from
shoplifting, 46% from
employee embezzlement, 17.6% from administrative error, and 5.8%
from vendor fraud.
Because of the inherent need for companies to reduce operational
costs, there is an ever-present need for experienced Retail Security
Services or loss prevention services (LP professionals),
particularly in the retail security sector. Some colleges like
Sonoma Community College in California and Eastern Kentucky even
offer degree programs in retail security related industries such as
loss prevention. Recently several associations such as the Retail
Industry Leaders Association are offering new educational
certification programs specifically for Loss Prevention and other
retail security related services. Among larger retailers there has
been a recent trend to include worker and customer safety programs
into the traditional Loss Prevention security job structure.
Shoplifting
Shoplifting is one of the most common property security related
crimes in the United States today. Anyone can be a shoplifter, an
important fact for loss prevention investigators to understand.
Those who focus on stereotypes such as race and age generally have a
difficult time detecting shoplifting. Statistically, shoplifting
occurs at approximately the same rate each day of the week and
December is the only month where it appears convenience stores
suffer appreciably increased losses. The twelve to
seventeen-year-old age group is statistically the most active
shoplifting group in relationship to its size, followed by the
eighteen to twenty-nine age group.
According to the 2004 17th Annual Retail Theft survey conducted by
Jack L. Hayes International, 689,340 were shoplifters were
apprehended by 27 of the major U.S. retailers. This figure was a
4.86% increase from total of 657,414 shoplifters apprehended in
2003. In 2004, $70,039,564 dollars were recovered from shoplifting
apprehensions compared to $68,927,833 in 2003. In 2004, the average
dollar value for a shoplifting apprehension was $101.60 dollars.
Most amateur retail shoplifters tend to spend too much time
selecting retail merchandise and looking for
private
investigators,
private detectives or retail detectives,
thus making them much more likely to be detected. Professional
shoplifters on the other hand tend to already know what merchandise
they wish to steal and move quickly to get it. A common technique
used by professional shoplifters is called a "grab and run", in
which the shoplifter quickly enters the store, grabs an item, and
runs out of the store. Due to the quickness of this technique,
professional shoplifters are difficult to catch by the security
guard personnel or loss prevention officers.
Loss Prevention departments are run very differently from retailer
to retailer. Centralized Loss Prevention departments are generally
more common with discount retailers. Some retailers use a
centralized command system in which there are floor people, a
department manager, and a district manager. Decentralized Loss
Prevention Departments and security guard depatments are more common
in clothing retailers. Other retailers for instance, have
decentralized loss prevention departments and security guard
departments in which there are usually only store investigators and
store detectives and sometimes off-duty police officers to assist in
the arrest of shoplifters.
Attitudes towards shoplifting have shifted greatly in the last two
decades. Retailers now want their investigators to focus more on
prevention of theft rather than apprehension of shoplifting
suspects. This is a result of numerous false arrest charges over the
last two decades that have cost retailers millions of dollars in
lawsuits. A false arrest is generally known in the Loss Prevention
service world as a "bad stop". A bad stop generally occurs when an
investigator, a store detective or a retail detective arrests a
suspect who turns out not to have any merchandise.
To
combat bad stops retailers have introduced a series of steps
designed to help establish probable cause. The number of steps vary
from company to company but are usually in some semblance of the
following:
-
The store investigator must
see the suspect enter an area or department with no merchandise
in their possession.
-
The store investigator must
see the suspect select the store's merchandise.
-
The store investigator must
see the suspect conceal the store's merchandise.
-
The store investigator must
maintain constant surveillance of the suspect and be certain the
store merchandise is not discarded.
-
The suspect must pass all
reasonable points of sale with the merchandise before conducting
an apprehension.
Shoplifting incidents rarely go according to the five steps listed
above. Retail investigators must use their best judgment when
establishing probable cause. Most retailers today have established
certification programs that a Loss Prevention employee must pass
before they can make arrests. Usually these programs consist of a
buddy system, which pairs a new store investigator with an
experienced store investigator. These programs usually last for
several months.
One method of bypassing steps is commonly employed is establishing
the selection of merchandise. This is usually done by noting what a
suspect had when first observed. If seen later with several items
they did not have before, it may be reasonable to assume that the
merchandise belongs to the retailer. Many feel strongly that good
judgment is key to making successful apprehensions by the store
detectives or the security guards. At times not all conditions can
or will be feasibly met to make an apprehension. However it is still
possible to prevent the loss.
Some retail investigators or store security guards
have been known to attempt forms of consent searches in an attempt
to obtain probable cause without legally detaining a person. It may
be explained to the customer "we need to check your receipt to be
certain you were not double charged." or some other reason. However
such techniques, while not false arrest may still result in the
firing of an Loss Prevention Investigator or a store detective
or a security guard / security officer if it is a
violation of company policy. Others feel all steps must be met
before any action is taken. This second approach is used to protect
the company from law suits resulting from "bad stops" from a store
detective or a security guard officer which insult innocent
shoppers. The exact definition of a "bad stop" varies from business
to business, it is generally understood as false arrest in the
security guard and loss prevention industry.
The strict adherence to the rules of apprehension from store
detective or security guards have also come about as some
criminals try to defraud the loss prevention industry by "egging on"
or pretending to steal as a way to get Loss Prevention officers'
attention while others in the store really are stealing or simply to
get themselves arrested falsely for use in suing the company. Some
companies have taken a "hands off" policy to detaining shoplifters
due to past law suits.
Embezzlement
Employee embezzlement is the theft or taking of property or funds
entrusted to an employee by an employer. The most common type of
retail embezzlement is cash theft. Other types of employee
embezzlement include ringing up fake gift cards, passing
merchandise, discount fraud, and of course theft of merchandise.
Embezzlement investigations are widely known in the Loss Prevention
and store security industry as internal investigations.
According to the 2004 17th Annual Retail Theft survey 63,289
employees were apprehended for dishonest activity. This figure is an
increase of 4.01% or 60,850 employees in 2003. Retailers recovered
$42,468,681 dollars from incidents stemming from employee dishonesty
in 2004, an increase from the 2003 figure of $40,025,937. The
average case value for an apprehended dishonest employee in 2004 was
$671.03. This figure is notable, since it is almost seven times more
than the case value for the average shoplifter apprehension.
Employee embezzlement is usually handled by experienced store
investigators and store security guards working
undercover who generally have five or more years experience in the
loss prevention and or retail security industry. Cash theft is
generally investigated using cash office audits that appear on
exception reports and
CCTV cameras. Fake
gift cards are usually investigated through the use of an electronic
journal in which the gift cards are logged.
The passing of merchandise is usually discovered through the use of
an exception reports in which a particular employee is shown to have
an unusual amount of voids or no-sales. Generally merchandise is
rung up by an employee and subsequently voided out. The merchandise
is then passed to a person at the counter who usually is a friend or
family member of the employee.
Other forms of employee theft that are discovered via the use of
exceptions reports are discount and commission fraud. Discount fraud
is usually discovered again by the use of exception reports.
Discount fraud is the fraudulent use of an employee's discount to
reduce to the price of merchandise for someone who is not eligible
for it. Generally this is done by an employee passing their discount
card to a friend so they can receive the employee discount.
Commission fraud is usually accomplished by ringing large return
purchases back to another employee or to an employee who has
recently left the retail establishment.
Merchandise theft is often investigated by the store detectives or
the retail detectives through the use of CCTV
security cameras,
video surveillance systems, DVR surveillance systems,
internet surveillance, undercover operations, private
detectives, investigator observations, and rumors
floating around the store. Usually the items stolen by employees
tend to be small items with high dollar value or edible. A
particular high area of employee theft that is investigated using
CCTV or video surveillance systems is often the stock
rooms of a store. As a result Loss Prevention or undercover security
services often tours the stock rooms looking for "stashes" or out of
place merchandise as well as price tags or other areas of
opportunity. Typically a covert CCTV camera (hidden
surveillance cameras) is placed in the areas of high opportunity
for theft.
A
recent trend with larger retailers is to actively pursue prosecution
against employees who are embezzling. Generally this is because
employee embezzlement cases usually carry a far higher case value
than shoplifters and in most jurisdictions embezzlement is codified
as a felony offense. At times this can lead to lengthy security
related investigations that can last for months. Even still
particularly in small dollar cases many retailers still subscribe to
the theory that they will never recover their losses and release an
employee suspected of embezzlement outright.
Credit Card Theft
Typically stolen credit cards find their way into retail stores as
much as or more than online retail websites. This is usually for
several reasons: the first is because retailers generally have
relaxed their procedures for checking credit cards, so time spent at
the cash register can be hastened. Second is the anonymity that a
credit card thief enjoys by purchasing merchandise first-hand and
not having to leave an address for merchandise to be mailed to as
would be required by an online retailer.
Credit card theft is generally investigated by loss prevention
personnel, retail store detectives, undercover security guards or
security officers who receive a tip from a local police investigator
who is investigating a stolen card. Typically the use of a stolen
card can be easily found using the store's electronic journal log.
Using the electronic journal log, loss prevention investigators or
loss prevention officers can locate the register where the stolen
credit card was used. Sometimes CCTV video surveillance of
the transaction exists and can be used by the police to establish a
suspect or close a case when they already know who the suspect is.
Today, most retailers are not liable for the use of stolen cards
issued by banks and credit card companies. However, retailers today
are frequently establishing their own credit institutions and issue
their own in-store only credit cards. In-store credit fraud is
likely to become an increasing problem for loss prevention
investigators in the next decade.
Some of the inherent problems with in-store credit lay in proper
associate training. Temporary cards are regularly given out to
customers who forget to bring in their own card. Mail fraud may also
be used to intercept cards and when they are used it often goes
unseen for days if the ringing associate fails to check ID or if the
true card holder never calls in a complaint. In the opinion of
several experts, many retailers make adding a new name to an
existing account far too easy.
Check Fraud
Check fraud is generally accomplished in one of two ways. The first
is writing a check that is manufactured to look like a real
document, which in fact has no real value or no real bank account to
back it up. Typically this is done by suspects who are experienced
in the crime of forgery. The second method is check kiting, in which
the suspect writes a check for a high dollar purchase and withdraws
the funds from their account before the check clears. Check kiting
is usually done when suspects establish a fraudulent account under a
false name at a banking institution.
Retailers reserve the right to reject checks for whatever reason.
Most low-level store employees have no experience in detecting
forgery and check kiting, and thus these stores are very prone to be
the target of such fraud. Typically when checks are rejected by
store management, the suspect raises issue with the manager in
question in hopes that they will pass the check. Commonly those who
create fraudulent check hire minorities to make purchases at a
retailer. When a check is rejected a common scare tactic to get the
retailer to accept the check is to claim racial bias.
Sometimes an experienced store investigator or retail security guard
can detect obvious forgery by examining the check document or by
calling the bank to verify that the account actually exists. When a
false check is passed sometimes store investigators or loss
prevention officers can salvage it by taking it to the bank before
the suspect has the opportunity to withdraw the funds. Typically
cheque fraud is done by a large group of non-local individuals who
travel from state to state. Typically purchases are made in the late
afternoon right as banks are closing. Typically when an account
actually exists, fraudulent or not, the suspects are usually able to
withdraw the funds before the retail store can detect the fraud.
Safety and Loss Claims
The majority of larger retailers in the past ten years have begun
incorporating safety programs into their Loss Prevention programs
and their security programs. It is not a well known fact that one or
just a few Workman's Compensation or General Loss Claims can cost a
single unit store just as much in lost profit annually as
shoplifting does. Retailers have are beginning to take more of
hardline stance with negligent violations of safety protocol by
employees. Often the outcome of investigation of an employee's
unsafe actions can result in their termination from employment. Some
Loss Prevention programs and security guard programs consider
employee safety investigations as one and the same as an internal
theft case. In addition increasingly Loss Prevention managers and
security service managers are being held accountable for reducing
both Workman's Compensation and General Loss Claims as part of their
performance review.
Attempts to Professionalize Loss Prevention
A
large number of retailers have established centralized command
structures in an attempt to control Loss Prevention and retail
security much like other departments are in the retail industry.
Typically the centralized command structure consists of the typical
floor or low level store investigator or retail investigator who is
paid as a hourly employee. Next is the Loss Prevention Manager who
is in charge of the Loss Prevention department at the store level.
Generally the Loss Prevention Manager has been in the industry for
significant period of time and is paid a salary. The District Loss
Prevention Manager is the next level; this person is in charge of
overseeing the operations of several stores within a geographic
area. Generally the District Manager has college degree in
combination with significant amount of loss prevention experience.
Some retails such as the 99 Cent Only Store have hourly district
investigators that have the authority to terminate or prosecute any
store employee or manager with probable cause.
Several notable problems have plagued the loss prevention service
industry over the years. Loss Prevention departments have been
accused of such things as favoritism towards store investigators or
loss prevention officers and in some cases even an employee who may
be dishonest. Some store investigators or retail detectives have
been known to make up apprehensions or merchandise recoveries to
advance themselves within the field. The most prevalent problem is
known as "LP black listing" in which, a particular store
investigator would be barred from employment due to tight-knit
nature of the loss prevention industry. Recent attempts at
professionalism within the industry have gone a long way to
eliminate these issues.
Some retailers have gone as far to change the name of their loss
prevention departments to "Asset Protection." Asset Protection
departments usually include more aspects of the private security
service industry by using more visible means of deterrence, such as
uniformed door guards, uniformed security guards and uniformed
security officers. Some companies believe that the term "Loss
Prevention" has stigma attached to it and that Asset Protection
sounds more politically correct in modern retail. There has been a
recent trend the Loss Prevention industry to move back to less
restrictive means of reducing external loss due to the recent
increase in shoplifting activity.
Problems with Investigators
For the most part, Loss Prevention Investigators, retail security,
retail investigators and store detectives tend to develop one of the
three types of personalities towards their work. The personality
traits that develop are similar to those of police officers.
The Type A Investigator: Typically this type of investigator has a
strong anti-crime personality and experiences early success upon
entry into Loss Prevention. However, as apprehensions and
merchandise recoveries become less frequent, this personality starts
to take risks that others wouldn't. Many of the problems associated
with this type of investigator are customer complaints, bad stops,
conflict with employees, and sometimes fights with shoplifters.
The Lazy Investigator: This retail investigator usually comes into
the industry with no experience and assumes that the job is one that
will be easy. However, when the store investigator or the retail
store security quickly discovers how difficult loss prevention
investigations can be they become frustrated and adopt a lazy,
dismissive attitude. This type of store investigator or retail
security guard will often miss even the most obvious types of theft.
The Analytical store investigator: This is the least common type of
investigators, most store investigators fall into the category of
either the Type A or Lazy Store Investigator. Usually the analytical
Retail investigator has some educational background and typically
gets their career off to a slow start much like the Lazy Retail
investigator. However, as the analytical Retail investigator gains
experience they usually become very good at what they do. Typically
the analytical Retail investigator makes sound rational decisions
based on the situation they find themselves in. Typically the as the
analytical store investigator proceeds into their career they
frequently find their work unchallenging and sometimes unrewarding.
In addition, most analytical retail investigators feel that they are
underpaid for the work that they do.
A
common frustration among loss prevention professionals is the
perception of being seen as glorified form of security. Both
industries typically do use the same or similar equipment. Loss
prevention professionals and store retail security officers see
themselves as being proactive, while the security industry is often
reactive in nature. The line between security and loss prevention
has become increasingly blurry with recent advent of uniform door
guards, uniformed security guards, uniformed security officers,
etc,… and preventive measures to control safety, shoplifting, and
embezzlement.
Another of the larger problems facing loss prevention and retail
security today is the wage associated with entry-level retail
investigators. Typically retail investigators find themselves in
dangerous situations that retailers do not provide sufficient
training to deal with. Most store investigators today are paid under
ten dollars per hour. Sometimes retail investigators decide that the
potential danger associated with the position is not worth it for
near minimal wage and thus quit or refuse to make arrests.
Bag Checks and False Arrest
One of the security issues raised more and more often these day is
the issue of the legality of bag checks by retailers. The reason for
bag checks is simple, its cheap and it works. Most retailers use
Electronic Article Surveillance (EAS) to determine when a bag check
should be conducted. Typically EAS security sensors are placed on
high dollar items to deter shoplifting suspects, however items
containing large amounts of metal have been known to set off EAS
alarm towers.
Legally retailers can only search a customer's bag without probable
cause if a person consents to it. Usually a retail security
investigator requests the door personnel to search a bag because a
sensor set off an alarm tower, or because of what they or other
employees have seen in the store. If store personnel use force to
stop and detain a customer to look in their bag then it may become a
false arrest. In some instances, refusual by a retail customer to
consent to bag search will result the retail customer being
trespassed or losing their membership from a store.
Felonies, Misdemeanors, and Local Laws
Laws pertaining to shoplifting and retail theft vary from state to
state. Generally most state laws include an exclusion of limited
liability for retailers to conduct searches of persons they believe
to be shoplifting. Simply put retailers are allowed by law to detain
and question shoplifting suspects for a reasonable amount of time
for the purpose of recovery of merchandise. However, these laws
generally do not apply to false arrest and excessive force
incidents.
Laws vary from state to state pertaining to when a shoplifter can be
stopped and apprehended. For example, in Arizona concealment of
merchandise is considered a crime and a shoplifter can be stopped as
soon as concealment is established. In states like California
however, concealment is not a crime and a suspect must exit the
store before an arrest can be made by the store security or the loss
prevention officer.
Some state laws can lead to unusual and severe charges being brought
against a shoplifter. In Arizona for example a shoplifter can
actually be charged with felony third degree burglary. In California
a person can be charged with attempted robbery if they use physical
force while attempting to shoplift. In some jurisdictions a person
convicted of shoplifting multiple times may face a felony sentence
following conviction.
Most retailers follow a generalized corporate guideline which serves
as a blanket policy for the arrest of shoplifters nationally,
although some smaller retailers still decide their own policies on a
store to store basis. Generally these policies state that a
shoplifter can only be stopped and arrested after they leave the
store. Some retailers have been known to use local laws pertaining
to shoplifting to their advantage.
Generally in most states shoplifting is only considered a felony
when merchandise in excess of $250 is stolen. Some states however,
classify shoplifting as felony offense regardless of price. In some
states like Wisconsin the dollar amount for shoplifting to be
considered a felony is $2,500. Most felony shoplifting suspects
however, are only charged with misdemeanors by police to process
them through the criminal justice system more efficiently. Many
misdemeanor shoplifters are released by loss prevention
investigators and retail security after the recovery of merchandise.
Generally these shoplifting suspects are not charged with any crime
and are trespassed by store management.
One common example of False Arrest is the detainment of an
individual based only on speculation of concealment and not an
eyewitness to the act. False Arrests can be costly to companies and
often result in lawsuits or large monetary settlements. Settlements
being preferred by companies wishing to avoid the negative publicity
of court cases. Some jurisdictions render partial immunity to
merchants and their employees from being liable for a false arrest
as long as they have probable cause to detain.
Equipment, Tactics, and Technology
CCTV camera systems
CCTV is an abbreviation
for Closed
Circuit Television.
CCTV camera systems
are common to almost all loss prevention departments and retail
security departments. The obvious benefits of CCTV camera and
cctv surveillance is that the store investigator or the
retail security guard can gain a better view of a suspect, record
incidents, and not reveal themselves to shoplifting suspects. Some
retailers use two-man teams in which one person uses the CCTV camera
system to detect shoplifters and a floor man follows the suspect and
apprehends them.
CCTV camera systems and
surveillance systems have been drastically modernized in the
last decade. Most CCTV surveillance systems now record
digitally as opposed to using video tapes which were more common in
the past. Instead of storing video on a tape many CCTV systems
now include a computer server that contain CCTV video for months at
a time. One draw back of many of these CCTV DVR digital recorders is
their inability to move and view more than one fixed area of the
store. However new digital surveillance cameras overlooking
registers have greatly increased the number of internal cash thefts
being resolved.
In
relationship to its effectiveness, the CCTV surveillance has
to be considered one of the greatest tools ever used in not just
Loss Prevention but the security industry in general. Firms which
offer leases on such CCTV surveillance systems have brought
the costs down to a point where the franchise owner can consider it
economically justifiable. A quality CCTV system including a
videotape recorder and monitors (at least one of which is visible to
the public) is a proven deterrent with many related benefits. Some
related benefits of the CCTV system include protection from employee
theft. A well advertised visible CCTV system also acts as a holdup
deterrent and when thefts do occur, prosecution is simplified.
Covert CCTV Cameras
Covert CCTV cameras and
cctv surveillance systems are fairly recent innovation within
the loss prevention industry and security services industry. Usually
the CCTV surveillance cameras are small and compact and can
be easily moved from area to area.
Covert cameras and
hidden
surveillance cameras can be easily made to look like fixtures or in
some cases boxes inside a stockroom. Most covert cameras and
hidden cctv cameras are undetectable by the average employee.
Electronic Article Surveillance (EAS)


A
RFID
tag used for EAS
EAS
(Electronic article surveillance) is a deterrence security system
used by retailers to deter shoplifting. EAS involves the use of
electronic security towers and electronic security tags. The
security tags are placed on high dollar items throughout the store
and are disabled at cashier registers by scanning them over a
magnetized strip. If the security tag is not disabled it will
activate the security “alarm tower”, which is generally located at
the entrance to a retail store. EAS is effective in deterring
amateur shoplifting and promotes effective security.
See the
alarm tower and samples of other
RFID
tags used for EAS blow:

Serial
Numbers
Serial
numbers are now being
commonly placed on high dollar store merchandise. If loss prevention
or security departments record the serial numbers they can
subsequently track stolen merchandise if it were to be recovered by
the police. Recording serial numbers is usually only done by larger
retailers due to the fact that they have district store
investigators and retail detectives who investigate organized
shoplifting over a certain geographic area.
Two-way radio sets
Almost all loss prevention departments and security departments have
some form of
two-way radio
communication. This technology is used by retail investigators
mainly to help two-man teams follow a shoplifting suspect in
conjunction with the CCTV camera system / surveillance cctv systems
or to summon assistance when apprehending a shoplifter.
Exception Reports
Exception reports are compiled on an annual basis into a report.
Usually the reports are received monthly or bi-weekly. The reports
include information on cash audit overs and shorts, no-sales,
flagged returns, employees ringing themselves up, fake employee
numbers used to avoid commission docking, and merchandise voids.
Exception reports have dramatically reduced the amount of time an
investigator needs to spend to detect a possible sign of employee
embezzlement.
[edit]
Ink Tags 
Ink tags have been around for several decades and are most commonly
used by clothing retailers. The ink tags require special equipment
to remove the tags from the clothing. When the tags are forcibly
removed, one or two glass vials containing permanent ink will break,
causing it to spill over the clothing, effectively destroying it.
Ink tags fall into the loss prevention category called benefit
denial. As the name suggests an ink tag denies the shoplifter any
benefit for his or her efforts. Despite this, shoplifters have found
ways around them, such as duct-taping the holes through which the
ink comes out and then removing the tag with pliers, resulting in
little-to-no damage of the merchandise.
Dual Resonator EAS Stickers
Dual Resonator EAS stickers are usually placed on small items such
as shaving razors and cold medicines. These items are notable in
that they are popular items to sell at swap meets. Dual Resonator
EAS stickers are printed on a thin piece of paper and are difficult
to remove. Usually the sticker includes a retailers company logo and
serves as an indication to would be buyers that the merchandise has
been stolen.
Dummy Dome cameras
Dummy domes have become prevalent in all forms of retail loss
prevention. Dummy domes do not contain cctv surveillance cameras,
although they are identical to appearance of domes that do contain
cctv cameras. Dummy domes can be stratigically placed to herd
shoplifters into a particular location or be used as a deterrent to
shoplifting.
Ceiling Mirrors
Ceiling mirrors were once a staple of the loss prevention industry.
Now ceiling mirrors for the most part have be relegated to
convenience stores. Ceiling mirrors allow loss prevention
investigators and retail security to watch activity in a high theft
area without being seen. Some loss prevention and retail security
departments have been known to use mirrors to increase the range of
their cctv camera systems.
Refund Checks
Refund checks are aimed at possible fraudulent and high risk
refunds. The customer is told they will receive a check in the mail
instead of receiving cash or store credit during the actual return.
This tactic is typically employed in instances where a customer does
not have a receipt or there is prior knowledge that the return may
be questionable. Generally a loss prevention manager or operations
manager will have to approve the release of a refund check. This
tactic works well because fraudulent refunders generally will not
call the store to complain when they do not receive their check in
the mail.
Bottom of Basket
Bottom of Basket Loss (BOB), occurs when an item is placed on the
lower tray of a shopping cart and the cashier forgets to check the
lower tray for items resulting in the item not being paid for. What
makes this form of shrink unique is that it often happens both
intentionally and unintentionally on behalf of the customer. All
estimates for the dollar amount lost in this manner are over $2
billion US per year in North America alone, or $7 per lane per day.
There are a few
cctv security products on the market to help
prevent this loss. The most common are security mirrors mounted
across the checkout lane, some stores have employed security camera
systems pointed at the lower tray with monitors for each cashier.
Neither of these security products or security systems
work effectively because the problem is the inattentive cashier and
not so much visibility. A newer type of security system has been
released which actively monitors the checkout lane and alerts when
an item is detected on the lower tray of the shopping cart. One such
security system is named HIDEAlert which uses IR security sensors to
detect the shape of a shopping cart, then scans the lower tray for
items. The alarm will trigger when anything is on the lower tray
including products, bags, or coats, but uses technology to
distinguish the difference between a shopping cart and a person or
bag passing through the lane in order to accurately activate and
begin scanning for items. Some security systems have more false
alarms than others, for instance HIDEAlert can determine if an
object is actually on the cart and not beside the cart or in the
next lane over, this among other technologies help to eliminate
false alarms.
Consent Searches
Consent searches are a tactic that is widely used in law enforcement
and is still present in Loss Prevention and retail security today.
By asking a customer to consent to a search of their belongings such
as shopping bags and receipts any illegal search or seizure
requirements can be circumvented. Consent searches in some instances
can be used to build on previously existing facts to establish the
probable cause necessary to detain a shoplifter. The extreme end of
establishing probable cause through a consent search has been all
eliminated except with a few smaller companies who still utilize it.
In
modern Loss Prevention consent searches and retail security consent
searches are a tactic that is most expansively used today by
warehouse retailers. In using this tactic warehouse retailers have
made consent searches of their customer's purchases a part of the
membership agreement. Although a customer may refuse to consent to a
search of their purchase from a legal standpoint, the warehouse
retailer does retain the right as a private business entity to strip
the customer of their membership or issue a verbal trespass.
Warehouse retailers have been able to utilize security consent
searches to lower their prices on goods and reduce external
shrinkage at the same time.
Viewing Towers
Although the necessity of viewing towers has been eliminated to
large extent by CCTV camera systems and cctv surveillance
systems they still exist today. A tower is usually a centrally
located observation platform generally found in a location raised
above the sales floor. A retail investigator or store retail
security guard can spend time in the tower with searching for
shoplifters or investigating employees much in the same manner with
CCTV.
Integrity Shops
A
common example of an integrity shop is marking a large denomination
bill such as a $100 dollar and placing it in a cashier's drawer. The
goal is to see if the bill disappears from the drawer or doesn't
make it to its appropriate location such as a cash office. The
information gained from an integrity shop can be used to initiate
retail investigations or conduct interviews that could possibly
reveal dishonst activity or outright theft.
For
more information on our security
guard services or security
officers, CCTV video surveillance or access control
systems, call our security sales department today, for a FREE
on-site Security guard service Consultation, please
contact us
or call Toll Free: (800) 743-2313
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